Significant Size, Grade, Returns

Maurice Jackson: It certainly is, sir. Again, congratulations on that coveted decoration. Sir, you are one of Rick Rule's hand-selected investment executives with a proven pedigree of success. Share with us the makeup of your clients and your investment thesis that separates you from your peers.

Steve Todoruk: Well, I think my strength is the fact that I'm a geologist. I went to university in Vancouver to study and become a geologist and then worked in the field for several years for mining companies looking for deposits. Then I transitioned into getting involved in running my own junior mining companies as a president of two junior miners for about 12 or 13 years. Then in 2003 Rick Rule asked if I'd consider crossing the street to become a stock broker to help pick gold mining stocks for our clients to invest in.

As of today, I've got a 40-years' experience, it's all been in the mining industry. I've never done anything else, and I am glad to say I have one of the most exciting jobs in the world. I love it with a passion. Getting to go out and visit projects, and always talking to people in the industry. Those attributes I would say distinguish myself in providing my clients a leg up on helping to pick good stocks to invest in. This can be a very trying sector, especially when metals are out of favor. But over the decades doing this, my niche is to identify the small exploration companies that make what I think are going to be the significant discoveries, that major mining companies will want to come in and take over a said junior mining company to acquire new deposits and expand their resource portfolio to build into big new mines for the big company shareholders.

It's a pretty niche sector. There's a lot of companies out there, but over the years I've come to learn and convince myself that this is the best place to be, in significant new discoveries. If you're an investor, you want to get in right around the time of that discovery, now it's usually meaning the first good drill hole that indicates a significant new finding and sit back, and see if the company can successfully keep moving the drill over, which usually takes about two years of drilling to defy those horrific odds and successfully find a big significant deposit, and more times than not, you see a major mining company come in and take them over to build that mine.

Maurice Jackson: You said key words here, a significant discovery. What are the attributes that you're looking for that constitute a significant new discovery?

Steve Todoruk: Well, as a rule of thumb, I think that if a company's going to build a brand new gold mine, it's got to be at least 1 million ounces of good grade gold, and that factors in the location, the infrastructure, and a number of other factors. When a company announces that first good drill hole, I want to have sort of a good gut feeling that we've got a shot of a million ounces at least. For example, there's a recent discovery that I can't provide the name for compliance reasons, but the first four drill holes were on the order of 20 meters, 25 meters of 5 to 8 grams gold; 20 meters, 25 meters wide is not really wide, that's not this stuff that giant gold deposits are made out of, but that is the stuff that one million ounce deposits are made out of. That's kind of what I'm looking for when I reference a significant deposit.

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